Not even a year after – 8 months to be precise – piling up $40m in its kitty from venture capitalists, DoorDash is warming up the locker for more stash. The food delivery start up from San Francisco is looking towards yet another round of funding and this time with a $1 billion evaluation.
The start up claims to have raised a massive sum of $40m from Kleiner Perkins Caufield & Byers, Sequoia, Khosla Ventures and Charles River Ventures in March this year. The investment bumped up the company’s value to $600 million, cites CB Insights.
Already a major investor in the company, Sequoia Capital will be leading the round according to an anonymous source. Although the funding is definitely going to happen, the lump sum to be raised is till unclear, the sources add.
“The market for food delivery via app is ‘overcrowded’, research firm CB Insights declared recently. A third of all U.S. food delivery companies in operation today raised their first round of funding in the past year, CB Insights said in June”, reports Bloomberg.
Undeterred by the swarm of delivery apps in the market, investors have never been more excited and pro-active when it comes to funding.
The investors’ interest in DoorDash comes even after the company managed to land itself in a puddle of controversies in the past few months. Starting from a lawsuit in September that claimed, “they misclassified their delivery drivers as independent contractors to an accusation by In-N-Out burgers a few days back, DoorDash has had a rocky quarter.
Apart from the fact the DoorDash account is going to have a gala time, the funding gives out a clear sign that no matter how oversaturated the market is, investors are hungry forever!